In the age of Obama, many tout the demise of capitalism. But it's hard to speak of the death of something which didn't truly emerge. The basis of capitalism, true capitalism, is the market. "No man can proscribe a value to a product that a buyer is not willing to pay." (Adam Smith) Bargaining, haggling, whatever you may call it, is a fundamental market mechanism for regulating price, for ensuring that value is obtained by both seller and buyer. It is unique that out most advanced technology should reintroduce this vital aspect of capitalism into consumer transactions. This is precisely what eBay and other auction sites have done. The auction makes the buyer examine just how much value the product has to them, they will pay no more. Reserves ensure that the seller gets at least a minimum that the product is worth to them, then bidding ensures that the seller obtains exactly what the market will bear. eBay offers a global marketplace where the buyer and seller agree upon the value of a product. When the value is agreed upon, then every sale is a fair sale.explain© BrainMass Inc. brainmass.com June 3, 2020, 11:02 pm ad1c9bdddf
I'm not an economist by any stretch, but that saying from Adam Smith is one of my favorites. I'm an avid ebayer, and I have both bought and sold on there. I think the best deal I ever got was on a car. Not only did I get a very competitive price on the car, I got a carfax included, and I was able to see the seller's reputation. For ...
The solution provides an in-depth look into the questions posed by the student.